Dredging via PPP

We recently wrote about the need to dredge rivers and waterways—considering the worsening flooding problem occurring in Metro Manila and other parts of the country.

It appears there is no question that rivers and waterways will have to be dredged. The most recent episode of monsoon rains that caused the monstrous traffic jams in the metropolis last week has dramatically shown that need.

On the other hand, it appears that the government won’t be shelling out money to fund dredging projects in the short term. Ghost dredging projects have been identified as one of the favorite schemes of pork barrel scammers. More, a good number of politicians are embroiled in pork barrel-funded dredging projects that are now being questioned.

There have been suggestions for the government to explore how the public-private partnership can be made to work to address this concern. The proposal is for the government to invite private investors and ask them to put their money into river dredging projects. The government provides the incentives, defines the work quality standards, and sets up the measures to make sure the river dredging will not cause any harm to the environment.

One possible incentive would be to allow the private investors to recover all minerals and other deposits of value that they can find from among the silt and waste produced by the dredging.

The proposed scheme has received good feedback and comments to the effect that it is probably feasible and worth giving a try. After all, some point out, river dredging is actually a form of “mining”. In some countries, the method uses hydraulic suction hoses mounted on a boat. As the boat moves through the waterway, it suctions off the silt and mud and transfers them to the river bank.

As the silt and mud go through a pipe, the minerals of value are separated. In the proposed scheme, the private investors keep the minerals they recover as the source of their revenue and return on investment.
The view is that the more minerals of value the private investors recover, the more they will keep on dredging.

In the process, more silt and mud will be removed from the rivers and waterways, making the flow of water through them easier. As these waterways become deeper due to the continuing dredging by private investors, the more volume of water they can carry. This way, gushing waters triggered by heavy monsoon rains will not flow over to the communities lying alongside the waterways.

Concerns have been raised in these countries about the management of the silt and waste removed form the rivers and waterways. Based on their experience, governments may have to set up an efficient monitoring system to ensure that private investors engaged in this activity dispose of the waste and silt properly.
What is important is that governments are able to address the need to dredge rivers and waterways without spending public funds.

With strict quality standards and monitoring systems, this looks like a good strategy to implement.
Given the wealth of the country’s natural resources, it is believed that investors will find river-dredging projects full of opportunities. Access to the minerals mixed with the silt and waste is something investors may find worth looking at.

Some say this idea may not appeal to the government. It might want to keep spending public funds for dredging. However, it may have to wait for a long time and for the public anger against pork barrel abuse and misuse before the government can spend another centavo on dredging.

Given the mood of the times, the government may have to take a second look at the possibility of luring private investors into putting their money in river dredging ventures.

Investors are always on the hunt for investment opportunities that promise a good return. River dredging just might be one such opportunity.

The government has to realize that the many who live in flood-prone communities cannot wait until our leaders have sorted out and fixed the pork barrel mess. Every time rivers and waterways overflow and damage their homes and communities, they are reminded of the inaction of the government on the flooding problem.

The solution just might be in the hands of private investors who can see the wealth of opportunities buried underneath the waste and silt in our rivers and waterways.

source:  Manila Standard Column of Alvin Capino